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Business News/ Companies / News/  RoadRunnr raises $11 million in Series A funding
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RoadRunnr raises $11 million in Series A funding

The fresh round of funds will be deployed to build a robust technology platform and strengthen its delivery network

Roadrunnr is currently operates in Delhi and Bengaluru and is piloting its services in Mumbai. Premium
Roadrunnr is currently operates in Delhi and Bengaluru and is piloting its services in Mumbai.

Bengaluru: Hyperlocal delivery service provider RoadRunnr has raised $11 million in a Series A funding round from Sequoia Capital, Nexus Venture Partners and Blume Ventures. Founded by two former Flipkart executives Mohit Kumar and Arpit Dave in February, the Bengaluru-based company had earlier raised an undisclosed seed round from Nexus Venture Partners and Blume Ventures.

Unlike most well-funded hyperlocal delivery services such as Grofers and PepperTap, which are consumer-facing businesses, Roadrunnr is a business-to-business venture. It provides delivery services to companies and counts food start-ups such as PizzaStop, Faaso’s, Bhukkad, Chefensa and Brekkie as clients.

The fresh round of funds will be deployed to build a robust technology platform, expand to multiple cities, and strengthen its delivery network, the company said in a statement on Wednesday. RoadRunnr currently operates in Delhi and Bengaluru, and is piloting its services in Mumbai.

“Our services are asset-light, involving no hubs or warehouses, which allows a flexible model for both merchants and drivers," said chief executive Kumar. “We have been able to achieve delivery accuracy of close to 100% and have reached about 1,500 orders a day."

The company claims to work with students and drivers, among others, on a part-time basis to ensure an efficient delivery mechanism. According to the company website, RoadRunnr charges merchants a flat fee of 40 for the first 4.5km and 10 for every subsequent km, unlike most hyperlocal services that charge a part of the order amount as commission.

In the business-to-business hyperlocal delivery space, RoadRunnr competes with companies such as Delhi-based Turant Delivery and Quickli, and Mumbai-based Shadowfax and Grab.in. Barring Grab.in, which was founded in 2010, the rest are nascent businesses that were founded this year. Barring RoadRunnr, only Grab.in raised institutional funding of $1 million in April from Oliphans Capital and independent investor Haresh Chawla.

“Hyperlocal logistics is a very complex math and operational problem to solve at scale. A robust blend of platform thinking, along with operational execution are critical to provide fulfilment services for merchants in a scalable and cost effective manner," said Sameer Brij Verma, principal at Nexus Venture Partners.

The hyperlocal delivery space has emerged as one of the hottest sectors of late. Companies such as Grofers and PepperTap in the grocery space, Swiggy and TinyOwl in the food delivery space, and Zopper in the electronics segment have together mopped up more than $110 million since February this year from investors such as Matrix Partners, Sequoia Capital, Nexus Venture Partners and Tiger Global Management.

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Published: 15 Jul 2015, 01:42 PM IST
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